WEEKLY TIP

Three actions can help you to build a good financial foundation prior to turning 40: funding retirement accounts, paying off credit card debt and creating an emergency fund.

WEEKLY TIP

If you have recently divorced, be sure to review your will, your legal documents, and the beneficiary forms for your retirement accounts and insurance policies. All of them may need to be revised.

IS A 2016 INTEREST RATE HIKE STILL POSSIBLE?

According to the minutes from the Federal Reserve’s July monetary policy meeting, some Federal Open Market Committee members felt “that economic conditions would soon warrant taking another step in removing policy accommodation.” Others favored waiting longer to adjust rates, contending that the strong hiring seen in recent months would presently moderate. Fed officials broadly agreed that more economic data would be needed before any action.

WEEKLY TIP

When a single parent is ill or injured and cannot work, a family can face a major financial crisis. Single parents should consider disability insurance in light of that risk.

What steps might help you sustain and grow your retirement savings?

Reducing the Risk of Outliving Your Money, Provided by Brower Financial Group, Ponte Vedra Financial Planners.

“What is your greatest retirement fear?”

If you ask retirees that question, “outliving my money” may likely be one of the top answers.  Retirees and pre-retirees alike share this anxiety. In a 2014 Wells Fargo/Gallup survey of more than 1,000 investors, 46% of respondents cited that very fear; 42% of the respondents to that poll were making $90,000 a year or more.¹

WEEKLY TIP

Small business owners need not buy on impulse. The longer an SBO can postpone a major purchase, the more time he or she gains to locate the best deal or the product or service best suited to the needs and goals of the company.

CONFIDENCE INDICES HOLD STEADY

Rising half a point from its previous reading, the University of Michigan’s consumer sentiment index finished July at 90.0. The Conference Board’s monthly household confidence gauge came in at 97.3 last week, near its (revised) June mark of 97.4.¹   

WEEKLY TIP

Some parents spend thousands of dollars each year in support of their children’s athletic pursuits. Reducing such expenses could be wise; the money saved could go toward college tuition or retirement.

GAINS IN HOME BUYING & HOUSING STARTS

June brought a 1.1% rise in existing home sales. Analysts, polled by the Wall Street Journal, had forecast a 0.7% decline. In its new report, the National Association of Realtors said 33% of June sales involved first-time buyers, which was a 4-year peak. New Department of Commerce data showed housing starts up 4.8% last month.

WEEKLY TIP

Young adults who consider debt consolidation should weigh the pros and cons of the idea. Lower monthly payments might free up more cash for saving and investing. Extending a credit card balance for decades, though, may cost a borrower much more in the long run.

Some early financial behaviors that may promote a comfortable future. 

You know you should start saving for retirement before you turn 40.

What can you start doing today to make that effort more productive, to improve your chances of ending up with more retirement money, rather than less? Below are some good retirement savings habits before age 40. 

WEEKLY TIP

How large should an emergency fund be? Large enough to cover at least three months of expenses in cash. In fact, building your emergency fund to twice that size is a worthy goal.

SOLID GAINS In CONSUMER SPENDING, CONFIDENCE

Personal spending rose 0.4% in May, according to the Department of Commerce, complemented by a 0.2% advance for personal incomes. April’s consumer spending increase was revised up to 1.1%. The Conference Board’s monthly consumer confidence index also improved in June, heading north 5.6 points to a reading of 98.0.

Summer Travel Tip

Will you soon be using a credit card outside the U.S.? Call the card issuer before your trip, and let your bank know the exact countries and territories you will be visiting. Otherwise, you may run the risk of having your card suspended on suspicion of fraud.

BREXIT VOTE BATTERS GLOBAL MARKETS

The world reacted to the news Thursday night that U.K. voters had decided to leave the European Union. Germany’s DAX, France’s CAC-40, and Japan’s Nikkei 225 respectively ended their Friday trading sessions with losses of 6.82%, 8.04%, and 7.92%. Wall Street was not hit as hard, but the Dow fell 3.39% Friday, while the Nasdaq declined 4.12% and the S&P 500 retreated 3.60%.^1,2